Renergen to supply LNG to Cape Town-based transport co

Australia and South Africa-listed natural gas and helium producer Renergen, through its subsidiary Tetra4, has signed agreements with Cape Town-based transport company Timelink to supply LNG and displace a significant portion of diesel in the latter’s line-haul fleet, it said on May 2.

“The adoption of sustainable solutions in business has reached a tipping point, partners like Timelink are among those leading the pack,” said Renergen CEO Stefano Marani. “Timelink now has a distinct advantage over competitors when speaking to customers demanding a lower carbon footprint from their logistics suppliers, as well as enjoying a reduced operating cost and increasing operational flexibility.”

Timelink CEO Kamal Mitoo said, “As fleet operators, we are always looking to reduce our carbon footprint, enhance fuel efficiency and reduce costs. Introducing LNG to displace diesel in our fleet just makes sense.”

Renergen’s Virginia Phase 1 liquefaction plant will produce around 50 metric tons/day of LNG, while Virginia Phase 2 will see this increase to about 680 mt/day, or 940,000 diesel liter equivalent/day. Virginia Phase 2 is planned to be operational in 2026.

The Virginia project comprises various gas fields across Welkom, Virginia and Theunissen in South Africa's Free State. Their natural gas is very pure, according to Renergen, with an average methane content of more than 90%, but they also contain some of the richest helium concentrations recorded globally, the company has said.

Renergen in June 2022 signed a preliminary agreement for a loan of up to $500mn from the US International Development Finance Corp. for the second phase of the Virginia project. The company earlier this year announced its intention to list on the Nasdaq stock exchange in 2023. 

The company said it will have multiple LNG filling points across South Africa that will deliver the LNG to selected customers across all the major highways once the project is in its second phase.